Fidelis Launches Construction Consortium to Cover AI Data Centers
The Fidelis Partnership (TFP) has launched a construction consortium focused on AI data center projects, with an emphasis on excess layers where capacity has been thin. With AI builds accelerating and project values climbing, this move aims to meet growing demand for large, complex placements that need more limit on top.
TFP has assembled up to $250 million in consortium capacity by working with Fidelis Insurance Group and Fidelis Syndicate 3123. From January 1, 2026, TFP plans to add further capacity from its new Blackstone-backed Syndicate 2126, expanding the tower for qualifying risks.
This construction play sits alongside TFP's existing consortia in economically linked risk (e-cat) and contingency, reinforcing its position as a lead market for specialty placements.
"We are very pleased to be launching and leading this new consortium at a critical moment in the proliferation of AI data centers," said Michael Davern, UK CUO & group head of D&F Property and Energy at The Fidelis Partnership. "The number and size of AI data centers is growing at pace, and it is essential that the right insurance capacity is available to support the construction of what are high complexity and high value projects."
What this means for brokers and risk managers
- Excess layers focus: Designed to attach above primary builder's risk, adding limit where towers have been hard to complete.
- Complex, high-value appetite: Suited to large MEP-heavy sites with concentrated values and testing/commissioning exposures.
- Cross-sell potential: Capacity is complementary to TFP's other products-terror, cargo, project finance, surety, renewables, liability, and operational property-allowing bundling where it makes sense.
- 2026+ pipeline: Engage early for 2026 build schedules, especially where long-lead equipment (transformers, switchgear, chillers) and grid interconnects drive schedule risk.
- Market access: Opportunity to secure meaningful limit from a single coordinating lead rather than stitching smaller lines across the tower.
Key underwriting angles for AI data center construction
- Value concentration: High-cost electrical and mechanical systems, batteries/UPS, and cooling infrastructure; tight attention on EML/PML, hot works, impairment controls, and asset protection.
- Testing & commissioning: Elevated exposure during energization and integration; clarity on T&C sublimits, triggers, and durations is critical.
- Delay in start-up (DSU): Potential for large time-element losses tied to compute contracts and power delivery; set realistic critical path schedules and milestones.
- Nat-cat and water: Flood, wind, and water damage from construction activities remain key drivers; redundancy is good, but during build phases resilience can be uneven.
- Supply chain: Long-lead equipment and single points of failure (e.g., transformers) can extend downtime; document spares strategy and vendor SLAs.
- Security & terror: Site access controls and perimeter security plans matter, especially where terrorism or malicious damage coverage is in play.
Capacity, structure, and placement
The consortium offers up to $250 million in aggregate capacity today, with the potential to add more from Syndicate 2126 from January 1, 2026. That does not imply a single-line limit; actual line sizes will depend on risk quality, attachment, and pricing.
For those placing in the London market, the use of syndicates should feel familiar. If you need a refresher on how syndicates participate on risks, see Lloyd's overview here.
About The Fidelis Partnership
The Fidelis Partnership is a privately owned, Bermuda-headquartered managing general underwriter that writes property, bespoke, and specialty re/insurance through its subsidiaries. It also sponsors and incubates specialist MGAs via Pine Walk Capital Ltd. TFP is separately owned and managed from Fidelis Insurance Group.
Practical next steps: For 2025-2027 projects, prepare clean SOVs, commissioning schedules, DSU modeling assumptions, contractor CVs, site protection plans, and loss control reports. The better the data, the higher the confidence-and the easier it is to build the tower you want at the attachment you need.
Source: The Fidelis Partnership
Your membership also unlocks:
